Broadcaster Dr. Randy Abbey has criticized those promoting a credit scoring system as a transformative fix for Ghana’s economic challenges.
He argued that while a credit scoring system has its merits, it is not a standalone solution as it primarily benefits those who are economically active.
During his appearance on Good Morning Ghana on Thursday, July 25, 2024, he elaborated that without employment, a credit card system becomes ineffective since people wouldn’t have the means to repay their credit card purchases.
“Nobody should create the impression that it (credit scoring system) is some magic wand. I think that it’s good to have a system like that. It could help people. But we don’t proceed on the premise that that is the panacea.
“First of all, there must be an environment where people are productive. They are able to earn and therefore they can take up credits and be able to pay when it is due. That is the only way you can build your credit,” he said.
He also highlighted that despite the numerous advantages of a credit system, it presents several challenges.
He mentioned that in developed nations like the USA, the credit card system has led to significant debt for many individuals.
“But the mere fact that a credit score system exists does not mean that you can have everything, everything you want. If you go abroad today and you go to the churches, one of the prayer points is debt cancellation for individuals, their credit card debts and others.
“… Look, people are in serious debt. So, I’m saying that there’s absolutely nothing wrong with the scoring system and all that. But people shouldn’t create the impression that is what makes life comfortable for people. You must be in a position to service your debt,” he added.
Meanwhile, Dr. Mahamudu Bawumia, the flagbearer for the New Patriotic Party, has ridiculed the opposition National Democratic Congress for what he deems their unrealistic attitudes and misunderstanding of the proposed credit scoring system.
Dr. Bawumia has outlined plans to implement a national individualized credit scoring system, which would enable Ghanaians to purchase items such as mobile phones on credit and pay in installments based on their credit score.
In response, NDC representatives have derided the policy, questioning its practicality, especially following Bawumia’s example of purchasing a mobile phone on credit and paying in installments.
Dr. Bawumia has responded by mocking the NDC, arguing that their lack of understanding reflects their unfamiliarity with a system that is widely used among the working class in developed nations.
“When we say we want to do something, they always say it is not possible. But it is possible,” Dr. Bawumia said in Hamile during his campaign tour.
“When I said a few days ago that Ghanaians suffer a lot because everything we want to buy, we have to use cash to buy everything. In developed countries like the UK, Germany, Japan, and the United States, workers buy most things on credit. You buy a fridge, you buy a television, you buy a car, and you buy a mobile phone, you pay small, small, small. But in Ghana, you have to pay it all. So I said Ghana has reached a stage where we are going to introduce a credit scoring system that allows our workers to also pay small, small, small,” he said
He added “When I said it, they couldn’t understand. They don’t understand some of these things and we are going to do it and you can buy your mobile phone and pay small, small, small until you finish paying. And we will be introducing the credit scoring system.”